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Consider two bonds, each of which pays semiannual coupons and has five years left until maturity. One has a coupon rate of 5% and the
Consider two bonds, each of which pays semiannual coupons and has five years left until maturity. One has a coupon rate of 5% and the other has a coupon rate of 10%, but both currently have a yield to maturity of 8%. By what percentage will the price of each bond change if its yield to maturity decreases from 8% to 7%? use computations and formulas, not excel
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